House-hunters shun static property market

Nicky Burridge,Pa
Tuesday 16 March 2010 09:28 GMT
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The imbalance between supply and demand showed further signs of easing during February as potential new buyers stayed away from the housing market, research showed today.

Only 258 house-hunters registered with estate agents during the month, the lowest level for a year and down from 291 in January, according to the National Association of Estate Agents.

At the same time, the average number of homes estate agents had on their books rose slightly to 56 from 55, as recent price rises tempted sellers back to the market.

The group said bad weather in February may have caused buyers to stay away, while numbers may also have been hit by people receiving their Christmas credit card bills and the end of the stamp duty holiday.

But the fall in demand, combined with a slight easing in supply, is likely to stoke concerns that the housing market recovery is running out of stream.

The shortage of homes for sale has been one of the key factors in helping to push up prices during the past year, but many economists predict they could resume their downward trend as more homes come on to the market.

The figures come the day after property website Rightmove said asking prices in England and Wales edged ahead by just 0.1% in March as large numbers of sellers returned to the market.

The Royal Institution of Chartered Surveyors also recently said the number of people selling their home rose quicker than the number of potential new buyers registering with agents for the second consecutive month during February.

But despite the fall in buyer numbers, the NAEA said the average number of sales agreed per estate agent still rose to 6.8 during the month, up from 5.7 in January. The proportion of sales made to first-time buyers remained broadly unchanged at 24%.

Gary Smith, president of the NAEA, said: "It's encouraging to see that the bad weather hasn't deterred agents from making sales this month even if it has stopped some house-hunters from registering with an agent."

The group admitted the fall in the number of house-hunters during February was likely to impact on the number of sales agreed during March, but said it expected demand for property to pick up again going forward as the weather improves.

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